Credit Cards -Most Common Uses

About 61% of the American population has no savings so most families rely on help from credit cards and personal loans to assist with their finances. Having a credit card is not only a convenience when it comes to paying, but it also helps you set up a credit record and payment history that will help you get access to better financing (as long as you pay on time) in the future.

The use of credit cards continues to grow in popularity and these are the most common uses people give them:

• Facilitate payments.
• Establish and improve credit history
• Collect points, Miles and “Cashback”.
• Transfer balances from other cards.
• Consolidate debts.

There are several different types of credit cards for the different economic needs you may have. Here are some of the different credit card options:

• Cards that will return you a % of your monthly card expenses.
• Cards to accumulate travel miles and other types of points.
• Cards to establish or improve credit.
• Cards with limited interest of 0% (perfect for transferring balances).

Credit cards can be very useful, but they have to be used responsibly as an unpaid card can hurt your credit record and opportunities to receive financing in the future.

How Do Credit Cards Work

Credit cards are like a “mini-loan” that the bank gives you every month. At the end of each month you have to pay the total amount used or the bank will begin to charge you an interest of your outstanding balance. The amount you can use as well as the interest will depend on your credit record, payment history and card type.

Always make sure you understand and agree to the terms of a credit card before accepting it. Also be sure to follow the following tips in order to get the most out of your card for the lowest possible cost:

• Never use more than your approved credit amount (when going over your card limit you can receive fines).
• Always pay on time, even if it is the minimum (otherwise it will damage your credit and your interests can go up).
• Pay the full amount if possible every month (this way you don’t have to pay interest).
• Try to use less than 30% of your total limit (using less than your credit limit helps improve your loan).

How To apply For a Credit Card

The tradition was that in order to apply to credit cards you needed to personally go to several different banks in order to make the necessary applications. This causes unnecessary time spending on your part and even worse, it doesn’t let you easily compare all your card options available to make sure you can choose the right one for you. Thanks to technology and SuperDinero now you can easily apply online to credit cards and receive the following benefits:

• Apply online for free, it can be completed from the comfort of your home and on your own time.
• The response process is faster, you can receive a response in a matter of minutes.
• With the ability to compare more cards online you can find better terms (from 0% interest).

If you want to compare credit cards you can review the best card options that we work with or the SuperDinero experts can help you for free: hola.superdinero.org/tarjetas

Credit Cards According to your credit history

Although getting credit cards with the best terms (as limited interests of 0% balance transfers) is easier for people with a good credit score, there are also many credit card options for people with bad credit. We have created a list of the different possible credit card terms according to your credit history and more information on how you can apply:

1. Excellent credit: If you have a credit record between 670 to 850 you can qualify for the best cards like Platinum cards, but you probably already knew that. These cards have the best benefits, discounts and lower interest rates.
2. Good credit: If you have a credit record between 620 to 670 you can qualify for good credit cards such as Gold and Silver cards. These cards have very good benefits, discounts and low interests.
3. Regular Credit: If you have a credit record between 580 and 620 you can also qualify for good credit cards such as Gold and Silver cards but with a slightly higher interest than the best credit people.
4. Bad credit: If you have a credit record down from 580 you can still qualify for credit cards for people with bad credit. They don’t have so many benefits and the interests are a little higher but they can still help you with your payments. You can also apply to secured cards which help improve your credit and if you pay on time you are promoted to a credit card that does not require down payments.